The report is based on case studies analysing transactions and existing client relationships across a large spectrum of sectors, economic activities and geographical locations.
The European Banking Federation, together with the United Nations
Environment Programme Finance Initiative (UNEP FI), has today launched a
report that for the first time assesses how the EU Taxonomy can be
applied to core banking products. 
The EU Taxonomy is a classification system for environmentally
sustainable economic activities that was developed by the European
Commission. The system aims to provide a reliable reference for what can
be considered sustainable, primarily in the interest of transparency.
The Taxonomy will complement the EU banking sector’s commitments to
deliver on its critical role in financing the transition to a more
sustainable economy. This includes the activities and initiatives in the
areas of ESG risk management, financial innovation, and portfolio
alignment with the Paris Agreement. Consistent, well-founded definitions
of sustainable economic activities will increase transparency for
investors and other stakeholders, such as the civil society and the
scientific community, as well as enable the provision of finance to
support such activities.
The report, ‘Testing the application of the EU Taxonomy to core banking products – High-level recommendations,’
is the result of a one-year collaboration between 26 major European
banks, eight banking associations and five observing organisations. It
tests, pilots and assesses the complexities of applying the EU Taxonomy
to core banking products. Drawing on the insights from case studies in
corporate banking, SME and retail lending and other products, the report
identifies the benefits and challenges of applying the EU Taxonomy. It
outlines concrete steps and principles for practical application of the
taxonomy regulation and offers eight recommendations for regulators and
legislators, owners of standards and frameworks, labels and
certification schemes, and banks themselves to facilitate and improve
the operationalizing of the EU taxonomy for its application to banking
products.
Says Wim Mijs, Chief Executive Officer of the European Banking Federation:
“The EU Taxonomy sets ambitious goals and steep challenges for
businesses and banks alike. Our report for the first time analyses the
Taxonomy from a banking perspective. One thing is clear: significant
efforts will be required on all sides. We need to improve the data
availability and we need lots of innovative thinking. This to make sure
that the EU objectives of climate neutrality and those of the EU Green
Deal are successfully met. The Taxonomy will be a driver of
sustainability discussions within our industry and will undoubtedly
contribute to accelerating the green transition. We are committed to
continuous engagement with the Commission as the Taxonomy continues to
expand and evolve, especially now that transition finance becomes
increasingly important.”
FOR MORE INFORMATION:
Sustainable Finance page on the EBF website: CLICK HERE
EBF
© EBF
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